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igor_vitrenko [27]
3 years ago
5

Pfizer Inc., a pharmaceutical company, reported net income for fiscal 2016 of $7,215 million, retained earnings at the start of

the year of $71,993 million and dividends of $7,448 million, and other transactions with shareholders that increased retained earnings during the year by $14 million.If there were no additional transactions during the year that affected retained earnings, what was the balance of retained earnings at the end of the year?
Business
1 answer:
Kisachek [45]3 years ago
7 0

Answer:

$71,774 million

Explanation:

Given that,

Beginning retained earnings = $71,993 million

Net income = $7,215 million

Dividends = $7,448 million

Other transactions = $14 million

Balance of retained earnings at the end of the year:

= Beginning retained earnings + Net income - Dividends + Other transactions

= $71,993 million + $7,215 million - $7,448 million + $14 million

= $71,774 million

Therefore, the balance of retained earnings at the end of the year is $71,774 million.

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